Cable Industry Expects That Broadband, Mobile, B2B and Next-Generation TV Will Drive Next Phase of Growth With Over 5% Revenue Increase Per Year

Cable Industry Expects That Broadband, Mobile, B2B and Next-Generation TV Will Drive Next Phase of Growth With Over 5% Revenue Increase Per Year

LONDON, June 14, 2012/PRNewswire/ --

The 5th Solon Survey of European Cable Communication shows that cable operators remain
optimistic about revenue growth and see broadband, mobile and B2B as their largest
opportunities. European cable operators participating in this year's survey are
forecasting a revenue growth of over five per cent per year until 2014 and further EBITDA
margin expansion by two percentage points up to 48% on average during the same period.



The survey also highlights an important trend - for the first time, cable operators
forecast a declining basic TV penetration while the pay-TV penetration is forecast to
continue to grow.



Next-generation TV services are cited as the main tool to protect the TV customer base
of cable operators. Major elements of future TV services include multi-screen,
TV-everywhere and next-generation STBs. In addition, cable operators highlight the
importance of turning OTT from a threat into an opportunity.



"TV customers increasingly prefer tailor-made video offerings rather than 20-30 analog
channels. TV customers look for HD TV, digital recorders as well as movies and TV series
on demand. This is the reason why 86% of participating cable CEOs put next-generation-TV
on top of their strategic agenda," explains Christian Teichmann, Managing Director at
Solon Management Consulting in London.



The uptake of online video usage on multiple devices in consumers' homes will lead to
a further increase of average bandwidths. The capability to offer higher speeds is
therefore considered key by most participating cable operators to preventing churn and
winning the infrastructure competition against FTTH players.



The great majority of cable operators have moved into the mobile and the B2B business.
While these operators often experienced initial draw-backs in gaining a foothold in these
segments, they are now reporting an increase in revenues and expect strong growth in the
coming years.



"The Solon Survey of European Cable Communication clearly shows that cable operators
are planning to continue the battle for dominance with telecoms incumbents by pushing
quadruple-play offers (TV, broadband, telephony and mobile) as well as B2B services. Cable
operators have so many growth options - it is up to them to make the most out of it," says
Teichmann.



The cable operators participating in the survey are serving 25 million customers in 11
European countries. A summary of the Solon Survey of European Cable Communication is
available for download at http://www.solonstrategy.com.



Notes to Editors



For further information or to arrange an interview with one of the authors, please
contact Jennifer Lawman / Margret Steinle at +44-207-087-9000 or +49-89-210388-0 or via
email Jennifer.lawman(at)solonstrategy.com or margret.steinle(at)solonstrategy.com.





Source: Solon Management Consulting GmbH




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